OBLN Stock Price: Over 20% Increase Explanation

By Amit Chowdhry ● May 24, 2021
  • The stock price of Obalon Therapeutics Inc (NASDAQ: OBLN) increased by over 20% during intraday trading. This is why it happened.

The stock price of Obalon Therapeutics Inc (NASDAQ: OBLN) — a vertically integrated medical technology company with the first and only FDA-approved swallowable gas-filled intragastric balloon system for the treatment of obesity — increased by over 20% during intraday trading. This is a continuation in momentum as the stock price is trading at more than 70% over the past 5 days. 

The rally in the stock price is being driven by the company nearing its merger deal with ReShape Lifesciences. This morning, Obalon Therapeutics issued an announcement to remind its stockholders to vote on all the proposals related to the proposed merger with ReShape Lifesciences in advance of the upcoming reconvened special meeting of Obalon stockholders tomorrow at 8:30 AM PT.

“All stockholders are highly encouraged to vote by phone or email on this critical transaction. Without the required stockholder approval, the merger will not be able to be completed. The failure to complete the merger may result in, among other things, a material adverse effect on Obalon and its stock price,” said the company in a statement.

Following the merger, Obalon stockholders will own approximately 49% of the stock of the combined company. And as a result, Obalon stockholders would have the opportunity to participate in any future growth of the combined company after the consummation of the merger.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.